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The Bill of Lading (B/L) is essential in trade and international logistics.

While most transactions are still done on paper, there is a noticeable movement towards digitization, particularly in Europe.

In this column, we will explain in an easy-to-understand manner the benefits of digitizing bills of lading (B/L) and why it has not yet been realized.

 

In this second installment, we will explain the definition, role, and expected benefits of the electronic bill of lading (eB/L), which is an electronic version of the bill of lading.

 

■What is an electronic bill of lading (eB/L)?

An Electronic Bill of Lading (eB/L) is essentially a digital version of a traditional paper Bill of Lading (B/L).
An electronic bill of lading (eB/L) serves the same legal and functional purposes as a paper bill of lading, acting as a receipt for the cargo, evidence of the contract of carriage, and proof of ownership of the cargo.
Digitization is expected to enable more streamlined, efficient, and secure transactions than paper, and to facilitate the instantaneous transmission of documents and information between trading parties.

 

Why is the eB/L important?
Compared to the traditional paper bill of lading, the electronic bill of lading (eB/L) is expected to revolutionize the shipping and logistics industry by offering the following advantages:

 

• Increased efficiency: The transfer of an eB/L takes just a few minutes, significantly reducing the time required compared to the weeks required for the transfer of the original document. The adoption of eB/L also makes it easier to automate business processes, reducing the overall burden of trade operations.
• Reduce costs: Switching to an electronic bill of lading (eB/L) also reduces the costs of managing paper bills of lading, not just in terms of money but also in terms of time and resources.
• Increased security and data accuracy:By digitizing documents, it is possible to reduce the risks that can occur with physical documents, such as theft, fraud, and loss, which are their greatest weaknesses.
• Accessibility and convenience: As long as you have an internet connection, you can access your eB/L from anywhere, on any device. Furthermore, because it can be processed in digital form, the risk of human error is reduced.
• Environmental benefits: Traditional paper-based bills of lading require a lot of paper considering the sheer volume of global trade. With companies now more concerned about ESG and GX than ever before, the eB/L offers a great advantage as a better option for the environment. It also reduces greenhouse gas emissions by eliminating the need for physical transport of documents.

 

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